Facebook talked to Visa, MasterCard, And other fiscal and e-commerce firms about backing the attempt codenamed Project Libra, According to the Wall Street Journal, which cited unnamed sources.
The system would use a digital coin very similar to bitcoin but different. That’s why Facebook would like to keep the coin’s value stable. Bitcoin and similar cryptocurrencies are vulnerable to wild inconstancies in value.
Some of these use cases are considering for Facebook’s stablecoin include letting its WhatsApp users send money to each other, And rewarding users with a portion of a coin to looking at advertisements.
The social networking giant is also trying to call up e-commerce companies and apps to take its cryptocurrency and integrate it as a payment method, Similar to how websites and apps currently use Facebook to let users log-in.
Facebook has been acquiring blockchain startups for some time now, And it’s well known it has a team working with blockchain technology. While Facebook has not formally confirmed it is launching a cryptocurrency, Previous reports suggested it contacted crypto exchanges about listing it.
To support its stablecoin-based payments system, Facebook is said to be searching for up to $1 billion in investments as collateral. Analysts have estimated that Facebook could earn as far as $19 billion until 2021 as a result of the launch of a cryptocurrency.
Facebook didn’t comment directly on the report but noticed through email that it’s”exploring ways to leverage the power of blockchain technology.”
“This new small team is exploring many different applications,” a spokesperson wrote according to Cnet.